Pension funds lead in 130/30 strategies

About $50 billion are now invested in 130/30 strategies, led mostly by pension funds, according to a new Merrill Lynch report. The bulk of 130/30 strategies have been offered by quantitative managers at large firms, such as State Street Global Advisors, according to the report, but more fundamental managers and hedge funds “are increasingly offering or considering the portfolios.” Merrill Lynch said in the report that it expects a “wave” of such asset managers to begin offering 130/30 strategies this year, as the “gap between traditional managers and hedge funds continues to narrow.” The full report is posted on the Merrill Lynch website, at http://rsch1.ml.com/9093/24013/ds/59685438.PDF.